V.I. residents will see an average drop in their power bills of $6 a month as of February, thanks primarily to lower oil prices.
The Water and Power Authority adjusts its billing every six months, based on the levelized energy adjustment clause. LEAC is the cost of oil to WAPA that it in turn passes on to customers. WAPA has permission from the Public Services Commission to implement the rate changes.
As a result of lower fuel costs, electrical customers will see a decrease of about 10 percent and potable water customers will get a 2 percent decrease, the authority announced Monday.
WAPA obtains oil from Hovensa in St. Croix. Patricia Blake Simmonds, WAPA spokeswoman, explained that the agreement between Hovensa and the V.I. government requires Hovensa to sell oil to the government at or below the price listed on the New York Index and it is usually the “cheapest” oil available.
While the main reason for the rate reduction is lower oil prices, another factor is the savings from waste-heat boilers being used on St. Thomas and St. Croix, WAPA's announcement said.
